Question

What are the examples of antitrust violations and their corresponding punishment?

a. Estoppels; suspension of one's license

b. Intentional misrepresentation; fines of up to $10 million for corporations and up to $350,000 for individuals and/or prison time

c. Antitrust violations; fines of up to $100 million for corporations and up to $1 million for individuals and/or prison time

d. Conversion; prison time and up to $1 million in fines

Answer 1

Antitrust violations include price-fixing, bid-rigging, and market division, with fines up to $100 million for corporations and $1 million for individuals, along with possible prison time. Monopolies from innovation are not illegal, but antitrust laws also cover restrictive practices affecting competition.

Step-by-step explanation:

Antitrust violations are serious infractions of antitrust laws which are put in place to prevent unfair business practices that reduce competition. These violations can include actions such as formation of cartels, price-fixing, bid-rigging, and dividing markets through allocation of customers or territories. The punishments for these infractions can be quite severe.

While having a monopoly due to innovation or efficiency is not illegal under U.S. antitrust laws, restrictive practices that have the effect of reducing competition are also subject to antitrust scrutiny. Cases involving restrictive practices are often controversial as they require detailed investigation into contracts and agreements that may indirectly limit competition.